Most of us spend a lot of time in pajamas. Sleepwear is arguably the pinnacle of comfortable clothing. So, it’s no wonder Australians are spending their cash on pajamas – currently the sleepwear market is worth over $60 million and it’s only expected to grow. 

If you’re thinking of starting a pajama company, then this could be a good time to get on board. However, starting a pajama company is not all about designing cozy sleepwear – you’ll need to address the legal side of things too. That way, you’ll be giving your pajama company the best start possible. 

What Is a Pajama Company?

A pajama company designs and/or sells sleepwear. This includes products such as t-shirts, shorts, pants, onesies and pajama sets. Pajama companies might also sell items related to pajamas such as robes, slippers, sleep masks and much more. 

When starting your pajama company, it’s important to think about the exact products you will be selling, who your target audience is and where you will be selling it. These are just a few of the important questions you will need to ask yourself – there’s plenty more details that need to be figured out. 

As you work out the particulars of your pajama company, creating a business plan is a good way to keep all your research, ideas and plans on track. 

How Do I Start My Own Pajama Company? 

To get your pajama company started, you will need to register it with the Australian Securities and Investments Commission (ASIC). 

The application form to register a new company can be completed online through the ASIC website. Before you get started on the actual form, you will need to have a number of details prepared. This ranges from administrative details such as your company address, phone number and bank details to more serious questions.

The serious questions involve your company set up and the legal structure of your company. It will determine who your company shareholders are, the directors of your company, how your company will be governed and the type of company you will be running. Needless to say, these are some pretty important decisions that will impact the future direction of your company, so you want to be making wise choices. 

It’s a good idea to get the help of a legal expert when setting up your pajama company. A legal expert can provide you with much needed guidance and make the setup process (which can be a bit complicated if you’re not familiar with it) much easier. Having the right advice right from the start can save you from trouble down the line – get in touch with one of our legal experts to help set up your pajama company today. 

Are There Any Legal Requirements For A Pajama Company?  

All companies need to follow the law and your pajama company is no different. A number of different rules and regulations will impact your pajama company, so it’s important to be aware of them to ensure legal compliance. 

Keep in mind that every company is different. Certain laws you need to follow will be determined by factors such as the location of your company and its exact business operations. Therefore, it’s a good idea to chat with a legal expert about your compliance obligations so you know exactly what you need to be doing. 

Generally, there a e a number of regulations that will apply to most Australian companies. We’ve listed some of them for you below. 

Australian Consumer Law

The Australian Consumer Law (ACL) recognises the rights consumers have when purchasing products or services. As a pajama company, it’s important to make sure your products and company’s customer policies adhere to the ACL standards. Matters such as pricing, advertising, misleading and deceptive conduct are all addressed by the ACL – ensure your company practices are in line with their regulations. 

Data and Privacy Law

Running a company means you will have access to information that most people don’t. This could be the private details of customers, employees or even other businesses you engage with. As a company, it’s your responsibility to take reasonable measures to protect any information you have access to. This isn’t just a legal obligation but something that’s important if you want to foster trust within the community.

Intellectual Property Law 

Intellectual property covers a broad scope of things, from design patents to copyright materials. As a pajama company, you will need to be aware of your rights and responsibilities under intellectual property law. This can involve protecting your designs through registration or ensuring you have the correct licences to use another person’s designs.

As a pajama company, you may also want to register a logo or your company name as a trade mark for your company branding. IP can be a pretty complex area with some long registration processes, so it’s important to chat with a legal expert and they can take care of matters for you.  

Employment Law 

Employment law will apply the moment you hire your first employee. Once you become someone’s employer, you are responsible for providing your employee with their basic employment rights such as pay, breaks and leave. 

On top of that, you will also need to ensure their professional work environment doesn’t cause them any mental or physical harm. Getting familiar with Australian Fair Work  laws and Safe Work Australia is a good place to start – talking to a legal expert is an even better way to understand your legal obligations as an employer. 

Can I Start My Pajama Company Online? 

You might be  thinking of starting your pajama company online. Afterall, setting up a company online tends to be much more cost effective and it allows you to reach a wider audience. While there are many benefits to starting your pajama company online, it’s important to make room for any additional legal measures you will need to implement, such as a Privacy Policy

A Privacy Policy is legally required for any business that collects information off its users, such as emails, phone numbers, addresses and bank details. You’re also required to have a privacy policy if your company has an annual turnover of more than $3 million dollars. 

If your pajama company is going to be operating in countries outside of Australia, then you might need to adjust or add an additional privacy policy that meets the standards of the other countries your company operates in – a legal expert will be able to help draft this. 

What Other Legal Documents Do I Need For My Pajama Company? 

A privacy policy (see above) isn’t the only legal document you will need to start a pajama company. Legal documents are a necessary part of starting any kind of company. They help protect your company, provide security, stability and prevent miscommunication. A few legal agreements you may want to consider getting include:  

It’s important to have a professional draft your pajama company’s legal agreements. The little details make the big picture – you want legal agreements that are free of mistakes, legally strong and provide the best protection for your pajama company. 

Next Steps 

Launching a pajama company can be an awesome new business venture however, it’s important to secure legal protection and be legally compliant when starting up your company. To summarise what we’ve discussed: 

  • A pajama company designs and sells sleepwear, including t-shirts, shorts, pants, onesies, robes, slippers, and sleep masks
  • Register your pajama company with the Australian Securities and Investments Commission (ASIC), deciding on the company’s legal structure and preparing necessary details 
  • Seek legal advice to ensure proper setup and compliance with laws, including Australian Consumer Law, data and privacy law, intellectual property law, and employment law 
  • Starting an online pajama company requires additional legal measures, such as a Privacy Policy, especially if operating internationally 
  •  Essential legal documents include Website Terms and Conditions, Supply Agreement, Distribution Agreement, Employment Agreement, Workplace Policy, and Staff Handbook 
  • Secure legal protection and compliance to ensure the stability and success of your pajama company 

If you would like a consultation on starting a pajama company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

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